ny: • Budgeted sales (all on credit) for November, December, and January are $257,000, $227,000, and $218,000, respectively. • Cash collections of credit sales are expected to be 75% in the month of sale and 25% in the month following the sale. • The cost of goods sold is always 70% of sales. • Each month's ending inventory equals 15% of next month's cost of goods sold. • 40% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following mon • Monthly selling and administrative, expenses that are paid in cash in the month incurred total $29,500. • Monthly depreciation expense is $29,000. The expected cash collections from customers in December are: Multiple Choice $253,250. ● $234,500. ● $249,115. ● $224,750: .
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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